Kraken Boss Slams UK Crypto Rules, Calls Them A Drag On Retail Flows

Kraken’s co-chief executive Arjun Sethi criticized the UK’s crypto marketing regime, saying new rules slow fund movements and make it harder for retail investors to participate.

“In the UK today, if you go to any crypto website, including Kraken’s, you see the equivalent to a cigarette box [warning] — ‘use this and you’re going to die’,” Sethi told the Financial Times.

He added, “Because of the speed at which they have to do the transaction, it’s worse for consumers. Disclosures are important . . . but if there are 14 steps, it’s worse.”

According to FT, Kraken co-CEO Arjun Sethi criticized the UK’s strict crypto regulations for hindering capital flows and hurting user experience. He said UK users are blocked from about 75% of crypto products, including DeFi staking and lending. Sethi also said Kraken won’t offer…

— Wu Blockchain (@WuBlockchain) November 12, 2025

FCA Rules Aim To Protect Investors With Risk Warnings And Appropriateness Checks

The Financial Conduct Authority brought in financial promotion rules in late 2023. Firms must post clear risk warnings, ban incentives to invest, build positive frictions, and run appropriateness checks to assess whether customers understand crypto risks. Companies marketing to UK users must comply.

Sethi said the added hurdles deter some customers from investing at all, which could mean missing potential gains. He argued that excessive friction slows transactions and undermines user experience.

According to the FCA, its rules help people understand both benefits and risks.

Regulators Tighten Grip As FCA Sues HTX Over Crypto Promotion Breaches

Executives have long said Britain’s stance is too cautious. Calls to loosen rules have grown this year, as the US under President Donald Trump has become more welcoming to digital assets.

Enforcement has also stepped up. The FCA sued HTX last month for failing to comply with promotion rules. The exchange is linked to Justin Sun, who has invested millions of dollars in Trump’s digital asset ventures.

Kraken, founded in 2011, ranks among the 15 largest exchanges by trading volume. Sethi, who co-leads Kraken with David Ripley and chairs Tribe Capital, said tighter UK protections leave British users unable to access about three quarters of the products available to US customers, including higher-yield offerings and some decentralised finance lending.

The San Francisco exchange is preparing for a public listing as early as 2026. Bloomberg reported that Kraken is working with Morgan Stanley and Goldman Sachs to lead the offering.

Expansion remains a focus. In March, Kraken said it would acquire derivatives platform NinjaTrader in a $1.5b deal, a move that would deepen its presence in futures and options while it navigates diverging regulatory paths in the UK and the US.